logo
  Join        Login             Stock Quote

Broad Based Commodities Strong, Precious Metals Continue Correction

 December 12, 2010 01:58 PM


Last week, precious metals (DBP) (SLV) (GLD) were under selling pressure. Given their strong performance in the past several months, this isn't unexpected. This coincided with the price loss of long term bonds (treasury and investment grade corporate) - an unusual correlation. In a bigger context, we view these as normal corrections.

Agriculture commodities (DBA) have been going up steadily. Industrial base metals were also strong. Energy markets had a big recovery last week, especially for natural gas (UNG). All these boded well with general rising stock markets (especially the U.S. stocks).

As a result, broad based commodities (DBC, GSG) are doing well, continuing their up trend.

Assets ClassSymbols12/08
Trend
Score
12/01
Trend
Score
Direction
SilverSLV32.56%33.3%v
AgricultureDBA12.54%10.55%^
Precious MetalsDBP12.32%12.65%v
Base MetalsDBB10.09%5.97%^
CommodityDBC9.76%8.02%^
GoldGLD8.21%8.33%v
US OilUSO6.8%4.62%^
EnergyDBE6.62%4.17%^
Natural GasUNG-7.66%-11.41%^

[Related -Gold Loses Its Appeal Fast]

[Related -Buck The Crowd With These Gold ETFs]

Click to enlarge graphics

For more information, please visit MyPlanIQ 360 Degree Market View.

In conclusion, with the looming inflation and U.S. dollar weakness, commodities can be used as a hedge in a portfolio. Precious metals and agriculture commodities are favorable.

iOnTheMarket Premium
Advertisement

Advertisement


Comments Closed


rss feed

Latest Stories

article imageOld Bank's New Breakout has Big Rally Potential

One of my favorite things to see in a long candidate is a pattern of beating Wall Street's earnings read on...

article imageIs The Stock Market's 5-Year Return A Useful Proxy For Valuation?

Tobin’s Q, a market-valuation metric, is back in the news, in part thanks to a widely read Bloomberg read on...

article image4 Dogs To Sell Immediately

Despite the chorus of analysts and investors calling for the long-awaited correction, the market is showing read on...

article imageThe Fed's Magical Mystery Tour

What's going on at the Fed? Notorious dove, Charles Evans of the Chicago Fed, gave a speech in read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.